1. Chapter 4: Project Integration Management
Information Technology Project Management, Seventh Edition
Note: See the text itself for full citations.

2. Learning Objectives
Describe an overall framework for project integration management as it relates to the other project management knowledge areas and the project life cycle
Discuss the strategic planning process and apply different project selection methods
Explain the importance of creating a project charter to formally initiate projects
Describe project management plan development, understand the content of these plans, and review approaches for creating them
Information Technology Project Management, Seventh Edition

3. Learning Objectives
Explain project execution, its relationship to project planning, the factors related to successful results, and tools and techniques to assist in directing and managing project work
Describe the process of monitoring and controlling a project
Understand the integrated change control process, planning for and managing changes on information technology (IT) projects, and developing and using a change control system
Explain the importance of developing and following good procedures for closing projects
Describe how software can assist in project integration management
Information Technology Project Management, Seventh Edition

4. Pre-Project Activities

5. Strategic Planning and Project Selection
Strategic planning involves determining long-term objectives, predicting future trends, and projecting the need for new products and services
As part of strategic planning, organizations
identify potential projects
Organizations often perform a SWOT analysis
analyzing Strengths, Weaknesses, Opportunities, and Threats
use realistic methods to select which projects to work on
formalize project initiation by issuing a project charter
Information Technology Project Management, Seventh Edition

6. Figure 4-2. Mind Map of a SWOT Analysis to Help Identify Potential Projects
Information Technology Project Management, Seventh Edition

7. Figure 4-3. Information Technology Planning Process
Information Technology Project Management, Seventh Edition

8. Methods for Selecting Projects
There are usually more projects than available time and resources to implement them
Methods for selecting projects include:
focusing on broad organizational needs
categorizing information technology projects
performing net present value or other financial analyses
Information Technology Project Management, Seventh Edition

9. 1] Focusing on Broad Organizational Needs
It is often difficult to provide strong justification for many IT projects, but everyone agrees they have a high value
Three important criteria for projects:
There is a need for the project
There are funds available
There’s a strong will to make the project succeed
Information Technology Project Management, Seventh Edition

10. 2] Categorizing IT Projects
One categorization is whether the project addresses
a problem
an opportunity, or
a directive
Another categorization is how long it will take to do and when it is needed
Another is the overall priority of the project
Information Technology Project Management, Seventh Edition

11. 3] Financial Analysis of Projects
Financial considerations are often an important consideration in selecting projects
Three primary methods for determining the projected financial value of projects:
Net present value (NPV) analysis
Return on investment (ROI)
Payback analysis
Information Technology Project Management, Seventh Edition

12. Net Present Value Analysis
Net present value (NPV) analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time
Projects with a positive NPV should be considered if financial value is a key criterion
The higher the NPV, the better
Information Technology Project Management, Seventh Edition

13. Figure 4-4. Net Present Value Example
Information Technology Project Management, Seventh Edition

14. Return on Investment
Return on investment (ROI) is calculated by subtracting the project costs from the benefits and then dividing by the costs
ROI = (total discounted benefits - total discounted costs) / discounted costs
The higher the ROI, the better
Many organizations have a required rate of return or minimum acceptable rate of return on investment for projects
Information Technology Project Management, Seventh Edition

15. Payback Analysis
Another important financial consideration is payback analysis
The payback period is the amount of time it will take to recoup, in the form of net cash inflows, the total dollars invested in a project
Many organizations want IT projects to have a fairly short payback period
Information Technology Project Management, Seventh Edition

16. Project Integration Management Processes
Information Technology Project Management, Seventh Edition

17. The Key to Overall Project Success: Good Project Integration Management
Project managers must coordinate all of the other knowledge areas throughout a project’s life cycle
Many new project managers have trouble looking at the “big picture” and want to focus on too many details
Project integration management is not the same thing as software integration
Information Technology Project Management, Seventh Edition

18. Figure 4-1. Project Integration Management Summary
Information Technology Project Management, Seventh Edition

19. Project Integration Management Processes
1. Developing the project charter involves working with stakeholders to create the document that formally authorizes a project—the charter.
2. Developing the project management plan involves coordinating all planning efforts to create a consistent, coherent document—the project management plan.
3. Directing and managing project work involves carrying out the project management plan by performing the activities included in it.
Information Technology Project Management, Seventh Edition

20. Project Integration Management Processes (cont’d)
Monitoring and controlling project work involves overseeing activities to meet the performance objectives of the project
Performing integrated change control involves identifying, evaluating, and managing changes throughout the project life cycle.
Closing the project or phase involves finalizing all activities to formally close the project or phase.
Information Technology Project Management, Seventh Edition

21. 1] Developing a Project Charter
After deciding what project to work on, it is important to let the rest of the organization know
A project charter is a document that formally recognizes the existence of a project and provides direction on the project’s objectives and management
Key project stakeholders should sign a project charter to acknowledge agreement on the need and intent of the project; a signed charter is a key output of project integration management
Information Technology Project Management, Seventh Edition

22. Inputs for Developing a Project Charter
A project statement of work
A business case
Agreements
Enterprise environmental factors
Organizational process assets, which include formal and informal plans, policies, procedures, guidelines, information systems, financial systems, management systems, lessons learned, and historical information
Information Technology Project Management, Seventh Edition

23. Table 4-1. Project Charter for the DNA-Sequencing Instrument Completion Project
Information Technology Project Management, Seventh Edition

24. Table 4-1. Project Charter (cont.)
Information Technology Project Management, Seventh Edition

25. 2] Developing a Project Management Plan
A project management plan is a document used to coordinate all project planning documents and help guide a project’s execution and control
Plans created in the other knowledge areas are subsidiary parts of the overall project management plan
Information Technology Project Management, Seventh Edition

26. Common Elements of a Project Management Plan
Introduction or overview of the project
Description of how the project is organized
Management and technical processes used on the project
Work to be done, schedule, and budget information
Information Technology Project Management, Seventh Edition

27. Table 4-2. Sample Contents for a Software Project Management Plan (SPMP)
Information Technology Project Management, Seventh Edition

28. 3] Directing and Managing Project Work
Involves managing and performing the work described in the project management plan
The majority of time and money is usually spent on execution
The application area of the project directly affects project execution because the products of the project are produced during execution
Information Technology Project Management, Seventh Edition

29. Coordinating Planning and Execution
Project planning and execution are intertwined and inseparable activities
Those who will do the work should help to plan the work
Project managers must solicit input from the team to develop realistic plans
Information Technology Project Management, Seventh Edition

30. Providing Leadership and a Supportive Culture
Project managers must lead by example to demonstrate the importance of creating and then following good project plans
Organizational culture can help project execution by
providing guidelines and templates
tracking performance based on plans
Project managers may still need to break the rules to meet project goals, and senior managers must support those actions
Information Technology Project Management, Seventh Edition

31. Project Execution Tools and Techniques
Expert judgment: Experts can help project managers and their teams make many decisions related to project execution
Meetings: Meetings allow people to develop relationships, pick up on important body language or tone of voice, and have a dialogue to help resolve problems.
Project management information systems: There are hundreds of project management software products available on the market today, and many organizations are moving toward powerful enterprise project management systems that are accessible via the Internet
See the What Went Right? example of Kuala Lumpur’s Integrated Transport Information System on p. 169
Information Technology Project Management, Seventh Edition

32. 4] Monitoring and Controlling Project Work
Changes are inevitable on most projects, so it’s important to develop and follow a process to monitor and control changes
Monitoring project work includes collecting, measuring, and disseminating performance information
A baseline is the approved project management plan plus approved changes
Information Technology Project Management, Seventh Edition

33. 5] Performing Integrated Change Control
Three main objectives are:
Influencing the factors that create changes to ensure that changes are beneficial
Determining that a change has occurred
Managing actual changes as they occur
Information Technology Project Management, Seventh Edition

34. 6] Closing Projects or Phases
To close a project or phase, you must finalize all activities and transfer the completed or cancelled work to the appropriate people
Main outputs include
Final product, service, or result transition
Organizational process asset updates
Information Technology Project Management, Seventh Edition

35. Using Software to Assist in Project Integration Management
Several types of software can be used to assist in project integration management
Documents can be created with word processing software
Presentations are created with presentation software
Tracking can be done with spreadsheets or databases
Communication software like and Web authoring tools facilitate communications
Project management software can pull everything together and show detailed and summarized information
Business Service Management (BSM) tools track the execution of business process flows
Information Technology Project Management, Seventh Edition

36. Figure 4-9. Sample Portfolio Management Software Screen
Source:
Information Technology Project Management, Seventh Edition

37. Chapter Summary
Project integration management involves coordinating all of the other knowledge areas throughout a project’s life cycle
Main processes include
Develop the project charter
Develop the project management plan
Direct and manage project execution
Monitor and control project work
Perform integrated change control
Close the project or phase
Information Technology Project Management, Seventh Edition